DARAG announces the signing of a loss portfolio transfer agreement with China Taiping UK as the first step towards a Part VII transfer
DARAG Group (“DARAG” or “the Group”), a leading legacy acquirer, announced that its German insurance carrier DARAG Deutschland AG has signed an agreement for a loss portfolio transfer (LPT) with China Taiping Insurance (UK) Co Ltd (“CTI”), a subsidiary of China Taiping Insurance Group ahead of a Part VII transfer.CTI has been underwriting in the UK and Europe since 1985, but due to changing regulatory requirements following Brexit, has turned to the legacy market to transfer its EU book of business. The transaction includes CTI’s business underwritten in the Republic of Ireland, the Netherlands, Belgium and Denmark and will provide a clean exit to CTI.Tom Booth, Group CEO, said: “We are delighted to partner with CTI through this transaction, which forms part of our overall strategy to offer bespoke localised solutions, backed by regional expertise. CTI’s trust in DARAG to support its clients for the remainder of their policies demonstrates the strength of our reputation to provide successful outcomes for clients.”Alexander Roth, Chief Executive Officer of DARAG Europe, said: “Our track record of successful transactions – both in Europe and globally – makes us the natural choice to provide a high quality and reliable legacy solution for CTI. Through our forward-thinking solutions, we are pleased to offer economic and operational finality for our partners.”Xiaodong (Sheldon) Yu, CTI CEO, said: “Partnering with Darag for a loss portfolio transfer provides an effective and compliant solution to CTI, which is an important first step towards Part VII transfer. “
DARAG announces Loss Portfolio Agreement with Insr Norway
DARAG Group (“DARAG”), a leading legacy acquirer, announces that following a competitive process, its German insurance carrier DARAG Deutschland AG has signed a Loss Portfolio Transfer (“LPT”) followed by a Portfolio Transfer (“PTA”) with Insr Insurance Group ASA (“Insr”), an insurance group listed on the Oslo Stock Exchange (“OSE”)All of Insr’s remaining insurance business will form part of this proposed transaction. The portfolio consists mainly of motor, property, casualty and workers’ compensation liabilities from both Norwegian and Danish jurisdictions. The deal will see DARAG provide legal finality of all Insr’s insurance liabilities before the end of the 2021, but economic relief as of LPT signing.Tom Booth, CEO of DARAG Group, said: “We are pleased to support Insr as it moves to eliminate its insurance risk. DARAG offers the necessary transaction security and strength of reputation to maintain the utmost quality of service for clients for the remainder of their policies. Our track record of successful transactions makes us the natural choice to assume all operational and financial obligations of Insr’s discontinued portfolio and to continue servicing its needs.”Alexander Roth, Chief Executive Officer of DARAG Europe, said: “This agreement demonstrates clearly again that DARAG is trusted worldwide to provide high quality, reliable legacy solutions for a wide spectrum of clients. We are particularly pleased to have once again achieved a successful outcome for a client in the Nordics region where we continue to expand our footprint.”Niclas Ward, CEO of Insr, commented “From Insr´s point of view, we are pleased to have reached this agreement with DARAG. This secures an orderly exit from the insurance business for Insr, and we are very satisfied to have DARAG as a counterparty, that has a proven track record in the legacy business. We will now focus on a smooth transition of the business to DARAG. In addition, we will review if there is any opportunity for the remains of Insr to continue in one form or another.”The PTA is subject to approval by the Norwegian FSA, Finanstilsynet (“NFSA”) and Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”) while the LPT comes into immediate effect.